Alice in the crypto wonderland.

Lykke blog
Oct 11, 2019 · 3 min read

It was a normal morning in late summer and Alice and Bob, our familiar characters from the crypto world, were getting ready to go to work. ‘Hey, Alice, what do you want for breakfast?’ — asked Bob. Alice replied without thinking that she wanted some toasts, at the same time as opening Coinmarketcap to check if Bitcoin was going to surprise her anyhow that day.

Bitcoin did not surprise her, it fell another 10%. Alice took a deep breath remembering how in December 2017 they invested 5000 euro which has now turned into some 2700. She then turned off the laptop and went into her bedroom. Suddenly, as she looked into the mirror of the closet, she saw somebody sitting on the bed behind her. Guess what? It was Humpty Dumpty. He then immediately announced to her in Jabberwocky that her crypto holdings had grown by 10%.

Alice opened her Lykke Wallet, logged in and indeed, she saw that the LyCI index has actually grown. ‘Strange’ — thought Alice looking at the mirror where everything appeared to be the other way around. ‘LyCI is supposed to indicate the trend of the market and not to be its upside-down reflection. Humpty Dumpty interrupted the silence to invite Alice to his unbirthday, but Alice had to go to work; so prosaic. Then the alarm-clock rang and Alice opened her eyes and realized that it was all just a dream.

Indeed, the famous fairy-tale by Lewis Carroll finishes with an equally famous quote “Life, what is it but a dream?”. Would it not be a dream to have your assets continuously growing no matter what direction the crypto market has taken? Assuming you are not the White queen from “Through the Looking-Glass”, it’s unlikely that you can remember the events that haven’t happened yet. More technically-savvy users are good at programming algorithms able to act at the point of trend reversal to maximize earnings potential but for most of the rest of us, such technical knowledge remains nothing but a dream.

The good news is that the LyCI index that grew when Bitcoin fell down in Alice’s dream was actually not a dream at all! At Lykke, we have developed a revolutionary tool designed to protect the users’ funds during a market downtrend. Short LyCI is the exact upside-down reflection of the LyCI top 25 crypto index — it grows as the crypto market falls.

This is how it works: Short LyCI consists of 25 constituents that are represented by the top 25 crypto assets with the largest market capitalization. It is called ‘short’ because it is an instrument for shorting crypto. If you expect the crypto market to go down, by using the Short LyCI ERC20 token you can take advantage of the reverse trend. The Short LyCI index appreciates southward movements on the crypto market so that your funds invested in Short LyCI grow as the market goes down.

The main purpose of such an instrument of portfolio management is to protect one’s funds against abrupt market drops. Without such a tool, the only option for an investor during a downtrend would be ‘hodling’. With Short LyCI, by shifting their funds away from the assets falling in value an investor can immediately take advantage of the reversed trend and make her/his funds grow again. In summary, Short LyCI allows you to bet on the downtrend.

Short LyCI, just like the other members of the LyCI token family, is currently only available on Lykke Exchange. Learn more about LyCI tokens and Short LyCI in particular, as well as about the T&C and country restrictions on Lykke official website.


Lykke is an international, Swiss-based company building a…

Lykke blog

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leveraging the power of blockchain technology



Lykke is an international, Swiss-based company building a global marketplace for the free exchange of financial assets. Lykke’s mission is to democratize finance by leveraging the power of the blockchain.

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